As we round the turn into autumn, tax deadlines come into view. (Exciting, right?) Whether you’re an entrepreneur, a freelancer, or just someone who wants to stay on top of financial obligations, understanding fall deadlines and ensuring compliance is important. Here are some quick dates and tips to help you stay on track.
September 10: Reporting Tips to Employers
If you earn income through tips, the 10th day of each month is a key date to remember. Employees who receive $20 or more in tips during the prior month must report these to their employers by this date. The IRS requires that all tips be reported using Form 4070. Failing to report your tips can result in penalties and interest on any unreported income, so it’s essential to keep accurate records and report your earnings on time. Now that’s a tip you can use!
September 16: Quarterly Estimated Tax Payments
Normally observed on September 15, this year’s quarterly estimated tax payment deadline is bumped to the 16th, owing to the 15th falling on a Sunday.
Why Quarterly?
The U.S. tax system operates on a “pay-as-you-go” basis, meaning that taxes are due as income is earned throughout the year. If you don’t have taxes automatically withheld from your income, or if payroll withholdings are insufficient to cover your total tax liability, you are responsible for making estimated tax payments. Examples include self-employed people, freelancers, and those with significant non-wage income, such as interest, dividends, or rental income.
Penalties are assessed for underpayment, so it’s essential to calculate your tax liability accurately and ensure that your payments are paid on time. Use IRS Form 1040-ES to calculate and submit your estimated tax payments, or pay online at IRS.gov. If you’re unsure about how much you owe, give us a call. We’re here to help.
But Wait, There’s More…
September 16 also marks these deadlines for businesses:
- Filing 2023 calendar year returns for partnerships and S corporations which requested an automatic six-month extension
- Depositing the third installment of estimated income tax for 2024 for corporations
You’ll find complete information in IRS publication 509, Tax Calendars, available here.
Coming Soon: October 15 Extension Filing Deadline
Although it’s only September, it’s wise to start preparing for the October 15 deadline if you filed for an extension on your 2023 tax return. This is the final date to file your extended return without incurring penalties. Additionally, October 15 is the last day to withdraw excess IRA contributions to avoid penalties, as well as the deadline to contribute to a solo 401(k) or SEP IRA if you’re self-employed.
Starting your preparations in September ensures that you won’t be scrambling at the last minute. Gather your documents, review your financials, and consider reaching out to us early to avoid a last-minute rush.
Tips for Staying on Track
- Set Reminders: While we do our best to remind you of upcoming deadlines, sometimes announcements on social media can get overlooked or email reminders might be routed to a spam folder, so be sure to use digital calendars, apps, or traditional planners to set reminders for each tax deadline.
- Organize Your Records: Keep all financial documents, receipts, and tax forms organized throughout the year. This will make it easier to calculate your liabilities and ensure that you don’t miss any important deductions or credits.
- Call on Our Team: If your tax situation is complex, talk to us. Our tax team is ready to provide guidance on estimated payments, deductions, and strategies to minimize your tax liability.
Remember September!
Stay informed, stay organized and stay connected to our team to navigate tax deadlines this fall and year-round. And don’t forget we’re here to help you suppress the stress of tax time and save money in the long run. It’s what we do.